What do you need to know about BIR Form 1901?
- The primary purpose of BIR Form 1901
- The people who need to file BIR Form 1901
- The steps you need to take to file the BIR Form 1901
Under the established TRAIN Law, all Filipino workers (aside from minimum-wage earners) are required to pay taxes.
That means yes, even freelancers earning a certain amount need to pay their taxes.
Unfortunately, many people find it difficult to file and compute their taxes. They believe they are not properly equipped to do this on their own. If you’re not sure how much to file, there are online tax calculators in the Philippines that can help you do that easily.
But first things first: you must have all your BIR Forms in order. If you’re a freelancer, this entails properly filing your BIR Form 1901.
What’s the purpose of BIR Form 1901?
BIR Form 1901 is used to register self-employed individuals, mixed-income individuals, estates or trusts with start-up businesses, and business owners registering a new branch of their store.
Who needs to file BIR Form 1901?
- Self-employed and mixed-income individuals
- Freelancers
- Employees who do freelance jobs as a sideline
- Project-based employees
- Estates and Trusts are also required to file the BIR Form 1901 when necessary.
File your taxes today with Taxumo!
What are the steps to file BIR Form 1901?
Depending on which group you belong to, there are two different ways you can file BIR Form 1901.
Self-Employed and Mixed-Income Individuals
Along with a fully-accomplished BIR Form 1901, you need the following to file this form:
- Any government authorized identification that clearly shows the name, address, and birthdate of the applicant. (NSO birth certificates, passports driver’s license, community tax certificate, etc.)
- A photocopy of the Mayor’s Business Permit. If it’s still being processed, a duly received application for the Mayor’s Business Permit is enough. Along with this, you can also choose to include a Professional Tax Receipt. For those who are not required to have a PTR, an Occupational Tax Receipt is enough. Aside from them, you can also provide a DTI Certificate.
- Payment proof of Annual Registration Fee (ARF).
- BIR Form 1906 – Application for Authority to Print Receipts and Invoices
- Final samples of Principal Receipts/Invoices
Once you have all the requirements, you can now apply for your BIR Form 1901.
Here is a simplified step-by-step guide:
- Accomplish both BIR Forms 1901 and 1906, then submit them together with the other documentary requirements in your Revenue District Office. (Tip: Have photocopies of all your documents readied. If you’re not sure about which RDO you should go to, it is the place where you applied for your TIN. When in doubt, call the BIR call center: 987-8888.)
- Pay the Annual Registration Fee (Php 500). Make sure that the payment form (BIR Form 0605) has the signature of the attendant. Also, some RDOs only accept payments through partner banks so it wouldn’t hurt to look for the nearest one beforehand.
- Afterward, you’ll be asked to pay for the Documentary Stamp Tax that will be needed for your documents. It is usually sold in the RDOs and costs only Php 15.
- Once all of the previous steps are done, the RDO will issue these 3 documents: Certificate of Registration (Form 2303), “Ask for Receipt” notice, and Authority to Print.
- Lastly, you are required to attend the taxpayer’s initial briefing that is conducted by the RDO for the new registrants.
The process of filing your BIR Form 1901 can be time-consuming depending on the volume of people in your RDO. It is also worth noting that different RDOs may have slightly different ways of handling this process.
Estates and Trusts
For Estates and Trusts, the procedure of filing their BIR Form is relatively easier and simpler. There are fewer requirements and even fewer steps.
Along with a fully-accomplished BIR Form 1901, the other documentary requirement is a photocopy of the death certificate of the deceased and judicial settlement for Estates; or a photocopy of the trust agreement for Trusts.
The process of this application is also as simple as handing over the documents.
- Accomplish the BIR Form 1901 and submit it with the required documents in the RDO that has jurisdiction over the registered address of the estate or the registered address of the trusts.
- Pay the Annual Registration Fee (Php 500) at the Authorized Agent Banks of the RDO.
Key Takeaway
Filing the BIR Form 1901 is usually a freelancer’s first step into the world of paying taxes. Once it is done, you can choose to do your taxes with the traditional pen-and-paper method or you could make your life easier with the help of an online tax calculator in the Philippines.
What if you have already a bir 1901 for business. Do you need to file another bir 1901 form for your freelance?
Good day tanong ko Lang po part po ako Ng census 2020 as contractual enumerators, Ang pasweldo po PSA samin ay for every 20 household na maenumerate considered as 1 day or 535 pesos as bayad , ngayon nakapag trabaho lang po ako Ng 23 days, pinag fill up po mila kami Ng BIR form 1901 para daw po sa tax namin at Ang bayad ay 500 pesos, Anu po ba dapat Ang tax na ibawas samin,, Tama po ba na mag fill up kami Ng bir form 1901? Salamat po Sana matulungan nyo ako
Annual Fee na yung 500 pesos kaya ganun kasi project based lang naman ang Enumerator. Kaya need mo talagang mag file ng form 1901
How about those Job Orders from LGU, they have a tax with held every payday and why they were asked to file the BIR form 1901 and pay for 500.00?
good morning open po ba ang bir now and do i need an appointment rgarding po sa form 1901 and meron po ba kaung onlline application for registration para mapasa na lng thru online ang 1901 at 0605 or need po ako pumunta sa BIR office sa intramuros…please response po..thank you po.godbless
Open cla. Nkapila kame today
good morning open po ba ang bir now and do i need an appointment rgarding po sa form 1901 and meron po ba kaung onlline application for registration para mapasa na lng thru online ang 1901 at 0605 or need po ako pumunta sa BIR office sa intramuros…please response po..thank you po.godbless
Kung project based employee ka po sa place of residence po ba ang RDO?
Is a newly opened sarisari store owner required to file form 1901?
Hello Yolanda,
Yes, it is best that you register your newly opened sari-sari store. However, you may also check with your local government as some cities implemented a tax-free special permit for Sari-sari stores if your income is below 250k annually. 🙂
okay lang po ba ipaprocess sa iba yung 1901 ? thank you po sa sagot
Hello Kristine,
Yes, you can have someone else process the BIR Form 1901 on your behalf. You may appoint an authorized representative or seek assistance from a tax professional to do it for you. Just make sure to have a valid authorization letter and other necessary documents for the process.
Hello Pwede po ba akong makakuha ng another copy of bir 1901? Yung 1901 ko po kasi nasa previous work job ko. And ngayon hinihingan po ako ng copy ng 1901 ko sa current job ko po. Thank you po
Hello Abby,
Certainly, you can request a copy of your BIR Form 1901. If your original copy is with your previous employer and you need it for your current job, follow these steps:
Contact Previous Employer: Ask your former employer for a copy of your BIR Form 1901.
Visit BIR: If you can’t get it from your previous employer, go to the nearest BIR office
Provide Details: Give your full name, TIN, and explain your need for the copy.
Follow BIR’s Process: Follow their procedures, which might include an affidavit of loss or a request letter.
Check Online Option: If available, check their website for online copy requests.
Hope this helps! 😊
Good afternoon po, last Feb 2023 nagfile po ako ng 1901 and 0605 sa BIR then Jun 2023 nag end po ang aking contract then Aug 2023 nagkameron na rin po ng job with the same agency pa din. Need ko pa ba ipaclose yung Jun 2023 na acct or hindi na? Or ipaclose ko nalang pag nag end na talaga ang current contract ko?
Hello Suzette,
Good day!
Wag nyo po muna ipa close ang registration ninyo until mag transition po kayo to full time employment and hindi na kayo tatanggap ng contractual client or Freelance clients. You can file naman po for 0 income declaration in cases na wala po kayong client or income as your way to inform BIR instead of closing your registration and re-register again if may client na. 🙂
Pingback: How to Grow Your Business in the Philippines | Taxumo Blog